Thursday, August 1, 2019

3 Alternatives To A High Interest Savings Account

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If you have some cash accruing into a nice little nest egg in your high interest savings account, you might be content to leave it there. However, when you look at even the highest interest rates offered by banks today, you can become a little disheartened. You might have a large amount of money that you have saved that is seemingly showing you very little return. Sure, a savings account is low risk, but couldn't it be working for you in a more aggressive way? Yes, it could. However, to make it work more aggressively, you need to be willing to take more of a calculated risk with your cash. As always, it pays to spread your investments, rather than place all of your financial eggs into one basket.

When looking at investment opportunities, consider how much money you would like to see as a return, and work out how long you want your cash invested for. The shorter term investments tend to be more of a gamble, whereas keeping your cash locked in for a decade or more, could see profit come to fruition. Take a look at these alternatives to a high interest savings account for your little nest egg.


Bricks and mortar investments are still thought of as being as safe as houses. While the economy is a little more volatile with Brexit on the horizon and an unpredictable President of the USA, property can still be worth your while. The best way to invest in property is to see it as a long term investment option. Consider purchasing a pad that you will rent out for a decade or more. Check out the most favorable buy to let mortgages and see if you can find a property where the rent covers your mortgage repayments and gives you some cash to put away. If you can locate a property that will tick over all by itself then you are onto an investment winner.

There are many horror stories of amateur landlords becoming stuck with tenants that won’t pay, a house in a crime ridden area, or a dwelling with structural issues. It’s up to you to do your research. Look at property prices in the area you are looking to buy. If they have increased for the past five years, the chances are that you are looking in a solid investment area. Vet your tenants and use a professional agency to manage your property. And always have a survey done on any home you are looking to make an offer on. With any luck, at the end of the decade, you will have paid the mortgage off, still have sitting tenants and have an asset that you fully own.

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The wine market is buoyant at the moment, with many amateur investors taking a punt on the latest vintage, storing it for a decade or more and then selling it on. A bit like alcohol stocks and shares, wine values can go up and down. Wine is nothing more than a commodity, like steel, gold or copper. As such, you should monitor the markets carefully if you are looking to invest in your favorite tipple.

A little risky, you should only invest as much as you can afford to lose. Perhaps you like the look of a 1982 rich Rioja, or may you want to get old vine Zinfandel from this website. Go with what you like, but also what is viewed by experts as a delicious vintage. The longer you can hold onto your case of wine for, the more rare it will become. Over time, wine can increase in value, just like a work of art or antique does. When you've made the return you are happy with, you can sell up and reinvest or pocket the profit.

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The forex markets require a little more effort on your part. However, if you've always fancied yourself as a trader, now is the time to have a go. Being a novice, you probably have no idea how to trade in currency. This is where the Forex trading account can help. By signing up and opening a dummy account, you can practise and play with pretend cash. Have a go at selling sterling against the Euro and buying Yen against the dollar. You might be surprised at just how well you can read the markets and follow the forecasts.

A sound short term investment, you might be able to make a decent return on your money within days, depending on how much time you have on your hands. Higher risk and more time intensive, the Forex market is not for the faint hearted.

If you want your cash to work more aggressively for you, then you need to be willing to take more of a risk. However, calculate this risk well, spread your investments, and keep hold of some of your cash, and you could be setting yourself up nicely for your twilight years.

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